Eastern Platinum Limited Reports Results FOR the Third Quarter of 2024
1080 - 1188 West Georgia St.
Vancouver, BC Canada V6E 4A2
NEWS RELEASE
EASTERN PLATINUM LIMITED REPORTS RESULTS FOR
THE THIRD QUARTER OF 2024
Vancouver, British Columbia, November 8, 2024 – Eastern Platinum Limited (TSX: ELR)(JSE: EPS)
(“Eastplats” or the “ Company”) is pleased to report that it has filed its condensed interim
consolidated financial statements for the three and nine months ended September 30, 2024 and
the corresponding management’s discussion and analysis (“MD&A”). Below is a summary of the
Company’s financial results for the third quarter of 202 4 (“Q3 2024”) and for the nine months
ended September 30, 2024 (“YTD 2024”) in comparison to the same respective period in in 2023
(“Q3 2023” and “YTD 2023”) (all amounts in USD unless specified):
• Revenue for Q3 2024 decreased to $11.0 million (Q3 2023 - $21.8 million), representing
a $10.8 million or 49.5% decrease. Revenue for YTD 2024 decreased to $45.5 million (YTD
2023 - $76.5 million), representing a $31.0 million or 40.5% decrease.
• Mine operating income decreased by $8.0 million (or -114.3%) to a mine operating loss of
$1.0 million in Q3 2024 (Q3 2023 - mine operating income of $7.0 million) as gross margin
declined to -9.4% in Q3 2024 from 32.1% in Q3 2023. Mine operating income in YTD 2024
decreased by $15.1 million (or -63.4%) to $8.7 million (YTD 2023 - $23.8 million), resulting
from a reduced gross margin of 19.1% in YTD 2024 from 31.1% in YTD 2023.
• Eastplats incurred an operating loss of $5.7 million in Q3 2024 compared to operating
income of $3.6 million in Q3 2023. Operating loss was $4.1 million in YTD 2024
compared to operating income of $15.8 million in YTD 2023.
• Net loss attributable to equity shareholders was $ 3.4 million ($0.02 loss per share) in Q3
2024 versus net income attributable to equity shareholders of $3.1 million ($0.02 earnings
per share) in Q 3 2023. The decrease in Q 3 2024 net income was largely attributable to
lower chrome sales in the quarter offset by a decrease in finance costs and a foreign
exchange gain in the period due to the strengthening of the South African Rand.
• Net loss attributable to equity shareholders was $0.8 million ($0.00 loss per share) in YTD
2024 compared to net income attributable to equity shareholders of $ 10.4 million ($0.06
earnings per share) in YTD 202 3. The decrease of YTD 2024 net income was mainly
attributable to lower gross margins earned on year -to-date chrome sales offset by a
decrease in finance costs and a foreign exchange gain in the period due to the
strengthening of the South Africa Rand.
• The Company had a working capital deficit (current assets less current liabilities) of $26.6
million as at September 30, 2024 (December 31, 202 3 – working capital deficit of $ 15.5
million) and short-term cash resources of $8.5 million (consisting of cash, cash equivalents
and short-term investments) (December 31, 2023 – $21.3 million).
Wanjin Yang, Chief Executive Officer and President of Eastplats commented, “ We continue to
ramp up tonnages at the Zandfontein underground section at the Crocodile River Mine to produce
high grade PGM and metallurgical chrome concentrate. As we approach the end of 2024 and plan
for 2025, we are focussed on improving recoveries and operating efficiently.”
Operations
The Company derived revenue from the processing of PGM and chrome concentrates at the
Crocodile River Mine (“ CRM”). Eastplats’ majority of revenue (approximately 84% and 92% for
Q3 2024 and YTD 2024, respectively) is from chrome concentrate sales.
Retreatment Project – Chrome recovery
Summary of chrome production for the three and nine months ended September 30, 2024 and
2023:
Q3 2024 Q3 2023 YTD 2024 YTD 2023
Total Tailings Feed (Tons) 294,246 519,914 961,412 1,766,928
Average grade Cr
concentrate 38.1% 38.6% 38.4% 38.7%
Tons of Cr concentrate 45,988 102,898 198,175 377,110
The Company continues the tailings storage facility (“TSF”) wall building program, utilizing waste
rock and paddocking, to raise the wall to facilitate continued depositing of reprocessed tailings.
The reprocessing of the original CRM tailings (the “ Retreatment Project ”) is expected to be
completed by early 2025.
PGM Circuits
Summary of PGM production from processing historic tailings resource through the PGM circuits
for the three and nine months ended September 30, 2024 and 2023:
Q3 2024 Q3 2023 YTD 2024 YTD 2023
Tons of PGM concentrate 223 854 1,976 2,969
PGM ounces produced
(6E)* 273 1,187 2,827 5,294
*PGM 6E ounces are estimates until final exchanges and umpire results have been concluded, which can take up to
three months
Year-over-year production decreased between Q 3 2023 and Q 3 2024 due to operational
challenges in the current period, as lower grade sections of the TSF, containing vegetation and
other impediments, were being processed.
Underground Operations
In Q3 2024, while commissioning of the processing plant continued, the Company began
processing run-of-mine (“ROM”) UG2 ore produced from the Zandfontein underground section
at the CRM. A total of 75,000 tons of ROM ore was blasted up to October 1, 2024, with
approximately 22,000 tons of the ROM ore processed in September.
Summary of PGM and chrome production from underground operations for the three and nine
months ended September 30, 2024:
Q3 2024 YTD 2024
Tons of chrome concentrate 4,354 4,354
Tons of PGM concentrate 242 242
PGM ounces produced (6E)* 1,211 1,211
*PGM 6E ounces are estimates until final exchanges and umpire results have been concluded, which can take up to
three months.
Prior Period Restatement of Comparatives
Certain 2023 comparative numbers in the condensed interim consolidated financial statements
and corresponding MD&A have been restated to show the impact of an error that was identified
and reported during the 2023 year end process, as discussed below.
As discussed in the previous news release of May 3, 2024, i n connection with the preparation of
the Company’s consolidated financial statements for the year ended December 31, 2023, an error
was identified in the recognition of revenue related to a chrome concentrate sales transaction in
the fourth quarter of 2 022 which impacted the Company’s previously filed audited consolidated
financial statements for the year ended December 31, 2022 and its unaudited condensed interim
consolidated financial statements up to and including the three and nine months ended
September 30, 2023.
A sales transaction that was included in deferred revenue at the end of 2022 and recognized as
revenue in the first quarter of 2023 should have been recognized in the fourth quarter of 2022
based on the fact that the Company had met all of its required performance obligations at the
time, as supported by the underlying contract and bill of lading. Previously reported revenue for
the first quarter of 2023 was overstated by $4.0 million, with associated adjustments in production
costs, accumulated other comprehensive loss and deficit. These adjustments carried forward into
the year -to-date figures reported as comparatives in the Company’s quarterly financial
statements.
The following table presents the effects of the restatement on the individual line items within the
Company’s unaudited Condensed Interim Consolidated Statement of Income, Condensed Interim
Statement of Comprehensive Income, Condensed Interim Statement of Financial Position and
Condensed Interim Consolidated Statements of Cash Flow , expressed in thousands of U.S.
dollars, except for per share amounts.
Nine months ended September 30, 2023
As previously
reported Adjustment As restated
$ $ $
Revenue 80,501 (4,021) 76,480
Production costs (50,197) 2,324 (47,873)
Mine operating income 25,490 (1,697) 23,793
Operating income 17,474 (1,697) 15,777
Net income for the period 12,125 (1,697) 10,428
Net income attributable to equity
shareholders of the Company 12,134 (1,697) 10,437
Earnings per share, basic and diluted 0.07 (0.01) 0.06
Comprehensive income for the period 3,890 (1,766) 2,124
As at September 30, 2023
As previously
reported Adjustment As restated
$ $ $
Accumulated other comprehensive loss (326,032) (13) (326,045)
Deficit (840,110) 13 (840,097)
Nine months ended September 30, 2023
As previously
reported Adjustment As restated
$ $ $
Net changes in non-cash working capital
items
Inventories 2,092 (2,324) (232)
Deferred revenue (4,677) 4,021 (656)
The Company’s audited consolidated financial statements for the year ended December 31, 2023
reflected these changes. The unaudited interim consolidated financial statements and related
financial information for the affected period contained in the Company’s unaudited interim filings
prior to August 12, 2024 should no longer be relied upon.
The Company has a primary listing on the Toronto Stock Exchange and a secondary listing on the
JSE Limited.
The Company has filed the following documents, under the Company’s profile on SEDAR+ at
www.sedarplus.ca:
• Condensed interim consolidated financial statements for the three and nine months ended
September 30, 2024; and
• Management’s discussion and analysis for the three and nine months ended September
30, 2024.
The condensed interim consolidated financial statements for the three and nine months ended
September 30, 2024 are available for download at https://www.eastplats.com/investors/quarterly-
reports/F2024/ and are also available on the JSE’s website at:
https://senspdf.jse.co.za/documents/2024/JSE/ISSE/EPS/Q324.pdf.
About Eastern Platinum Limited
Eastplats owns directly and indirectly a number of platinum group metals (“ PGM”) and chrome
assets in the Republic of South Africa. All of the Company’s properties are situated on the western
limb (Crocodile River Mine) and eastern limb (Kennedy’s Vale, Spitzkop, Mareesburg) of the
Bushveld Complex, the geological environment that hosts approximately 80% of the world’s PGM-
bearing ore.
Operations at the Crocodile River Mine currently include re -mining and processing its tailings
resource from the Barplats Zandfontein tailings dam and mining and processing ore from the
Zandfontein underground section to both produce PGM and chrome concentrates.
For further information, please contact:
EASTERN PLATINUM LIMITED
Wylie Hui, Chief Financial Officer and Corporate Secretary
[email protected] (email)
(604) 568-8200 (phone)
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward -looking statements” or “forward -looking information” (collectively
referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation.
Such forward -looking statements include, without limitation, forecasts, estimates, expectations and
objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many
of which are beyond the control of the Company. Forward-looking statements are statements that are not
historical facts and are generally, but not always, identified by the words “will ,” “plan,” “intends,” “may,”
“could,” “expects,” “anticipates” and similar expressions. Further disclosure of the risks and uncertainties
facing the Company and other forward-looking statements are discussed in the Company’s most recent
Annual Information Form available under the Company’s profile on www.sedarplus.ca.
In particular, this press release contains, without limitation, forward -looking statements pertaining to :
completion of the original CRM tailings and improvement of PGM and chrome recoveries and operations .
These forward-looking statements are based on assumptions made by and information currently available
to the Company. Although management considers these assumptions to be reasonable based on
information currently available to it, they may prove to be inc orrect. By their very nature, forward -looking
statements involve inherent risks and uncertainties and readers are cautioned not to place undue reliance
on these statements as a number of factors could cause actual results to differ materially from the beliefs,
plans, objectives, expectations, estimates and intentions expressed in such forward -looking statements.
These factors include, but are not limited to, unanticipated problems that may arise in the Company’s
production processes, commodity prices, lower than expected grades and quantities of resources, need for
additional funding and availability of such addit ional funding on acceptable terms, economic conditions,
currency fluctuations, competition and regulations, legal proceedings and risks related to operations in
foreign countries.
All forward-looking statements in this news release are expressly qualified in their entirety by this cautionary
statement, the “ Cautionary Statement on Forward -Looking Information ” section contained in the
Company’s most recent Management’s Discussion and Analysis available under the Company’s profile on
www.sedarplus.ca. The forward-looking statements in this news release are made as of the date they are
given and, except as required by applicable securities laws, the Company disclaims any intention or
obligation, and does not undertake, to update or revise any forward-looking statements, whether as a result
of new information, future events or otherwise.
No stock exchange, securities commission or other regulatory authority has
approved or disapproved the information contained herein.